RCMC renewal is the process of extending a Registration-Cum-Membership Certificate before its existing validity period ends. An RCMC is issued by <a href="https://www.skydo.com/blog/export-promotion-council-registration-rcmc">Export Promotion Councils</a>, Commodity Boards, Development Authorities and other authorised bodies to exporters dealing in specific products.

A valid <a href="https://www.skydo.com/blog/rcmc-certificate">RCMC</a> may be required for claiming certain Foreign Trade Policy benefits and concessions, depending on the scheme and applicable exemptions. This includes export schemes such as RoDTEP, Duty Drawback and the Export Promotion Capital Goods (EPCG) scheme, where RCMC requirements apply.

<a></a>How Long Is an RCMC Certificate Valid?

An RCMC remains active for five financial years. Its validity begins on 1 April of the licensing year in which the certificate is issued and continues until 31 March of the fifth financial year.

The five-year validity period applies to RCMCs issued through the DGFT framework by Export Promotion Councils, Commodity Boards, Development Authorities and other authorised bodies.

The certificate's expiry date is separate from any membership fee obligations imposed by the issuing organisation. Some EPCs require members to pay fees every year or at other intervals during the five-year period, so exporters should check their council's rules.

Indian exporters whose RCMC is approaching the end of its five financial year validity period need to renew it if they require a valid RCMC for their applicable export benefits, authorisations or other Foreign Trade Policy requirements. Additionally,

RCMC issuing authorities include Export Promotion Councils (EPCs), Commodity Boards and Development Authorities such as the Agricultural and Processed Food Products Export Development Authority (APEDA), depending on the exporter's main line of business.

The Directorate General of Foreign Trade (DGFT) requires exporters to obtain the RCMC from the authority concerned with their main product category, while the Federation of Indian Export Organisations (FIEO) can issue an RCMC for certain multi-product exporters not covered by an EPC or Commodity Board.

RCMC renewal does not involve a separate DGFT filing fee. The amount an exporter pays is the membership fee charged by the relevant Export Promotion Council, Commodity Board or other registering authority.

The fee depends mainly on the council issuing the RCMC and the exporter's turnover slab. Different bodies, including FIEO, EEPC India, HEPC, CHEMEXCIL and APEDA, follow their own fee structures.

In many cases, the fee is charged per year and attracts GST, but the actual amount varies between councils. Exporters should check the latest fee schedule or renewal instructions issued by their own council before making the payment.

When completing the renewal application, the turnover figure should refer to the export turnover requested by the council, rather than the business's overall turnover. Renewal generally involves paying the applicable membership fee for the next period, with the amount determined according to the council's current fee structure and applicable turnover slab.

Exact rupee figures vary by council and change periodically.

Note: The figures are council-specific and can change.

<a></a>How to Renew RCMC Online via DGFT: A Step-by-Step Guide

You can renew an RCMC online through the DGFT Common Digital Platform, which handles RCMC applications and renewals for exporters. Before starting, make sure your IEC details are up to date and your Aadhaar e-Sign or DSC is ready for authentication.

Note: Processing time can vary between councils and applications, so avoid treating a single number of working days as a universal DGFT timeline.

<a></a>What Documents Are Required for RCMC Renewal?

RCMC renewal generally requires the ANF 2C application, IEC certificate, PAN, GST registration certificate and proof of the applicable council membership fee, along with supporting documents based on the exporter's business structure and circumstances.

Note that before submitting the renewal application through DGFT, the IEC profile needs to be updated, with the application authenticated using a DSC token or Aadhaar e-Sign as applicable.

Requirements can differ between issuing authorities. Exporters should check the specific document list provided by their EPC or other registering authority before submitting the renewal application.

Exporters should renew their RCMC to keep their registration with the relevant Export Promotion Council or other authorised body active and maintain access to benefits and services linked to a valid certificate. Besides that,

How Does Skydo Help Receive International Payments With Full Compliance?

Renewing your RCMC takes care of one part of export compliance. The real hassle starts when the payment arrives, and you need a reliable way to receive and document those export proceeds. Skydo brings the payment and documentation side into one platform for Indian exporters. With Skydo,

Tax on Foreign Income: What Indian Freelancers Need to Know (2025)

large_Tax on Foreign Income: What Indian Freelancers Need to Know (2025)

medium_Tax on Foreign Income: What Indian Freelancers Need to Know (2025)

small_Tax on Foreign Income: What Indian Freelancers Need to Know (2025)

thumbnail_Tax on Foreign Income: What Indian Freelancers Need to Know (2025)

An RCMC (Registration-Cum-Membership Certificate) is an official document that certifies a business as a registered exporter dealing in specific products. It is issued by government-authorised bodies such as Export Promotion Councils, Commodity Boards, or Development Authorities. It can be required when claiming benefits under government export schemes such as RoDTEP, Duty Drawback, and the Export Promotion Capital Goods scheme.

An <a href="https://www.skydo.com/blog/rcmc-certificate">RCMC</a> stays valid for five financial years, running from 1 April of the issuing year through 31 March of the final year. Some councils separately require annual renewal of membership fees to keep the certificate active throughout that period.

This article focuses specifically on downloading a certificate after approval, following <a href="https://www.skydo.com/blog/rcmc-registration-benefits-for-export-business">RCMC registration</a> and the approval of the application.

<a></a>How To Download an RCMC Certificate From DGFT Portal: A Step-By-Step Guide

Downloading an RCMC certificate from the DGFT portal takes five steps, but only once the certificate has already been issued and approved by the relevant EPC or Commodity Board.

The exact menu sequence on DGFT runs login, then Services, then e-RCMC, then Search by IEC, then Download PDF. Each screen along the way should display the correct IEC details and application status before the download option becomes active.

Note that RCMC is only one of the documents exporters may need to access online. Other export records follow their own portal-specific processes, such as the steps involved when you<a href="https://www.skydo.com/blog/how-to-download-shipping-bill-from-icegate"> download a shipping bill from ICEGATE</a>.

Which Documents Are Needed to Download an RCMC Certificate?

To download an RCMC certificate from the DGFT portal, exporters commonly need three core documents, namely the IEC (Importer-Exporter Code), PAN (Permanent Account Number), and GST registration certificate. For:

Once the RCMC registration is approved, the certificate can be downloaded online through the applicable issuing body's process.

How Does Skydo Help Once You Have Exported Your Products?

Once an export is complete, getting the payment into India without any hassle becomes the next concern. <a href="https://www.skydo.com/">Skydo</a> helps exporters manage international receipts through a digital payment setup that combines multi-currency receiving accounts, transparent transaction fees and payment documentation. With Skydo, you get:

Proforma Invoice: Meaning, Format And Template

large_Proforma Invoice: Meaning, Format And Template

medium_Proforma Invoice: Meaning, Format And Template

small_Proforma Invoice: Meaning, Format And Template

thumbnail_Proforma Invoice: Meaning, Format And Template

What Is an OPGSP (Online Payment Gateway Service Provider)?

An OPGSP, or Online Payment Gateway Service Provider, was a framework that let Indian exporters, freelancers, service providers, and e-commerce sellers collect international payments without needing a direct relationship with a foreign bank.

RBI first rolled the framework out in 2010, then updated it through a circular dated 24 September 2015. The whole idea was to make export collection simpler for businesses dealing with relatively small overseas payments, the kind that didn't justify setting up full banking relationships abroad.

Rather than receiving money straight from a foreign bank, exporters got paid through an intermediary instead. The OPGSP would collect the funds overseas, route everything through a designated collection account, and then hand the money over to the exporter's Indian bank account once the necessary compliance checks were done.

Unlike your everyday domestic payment gateway, OPGSPs were built specifically to handle cross-border export payments, nothing else.

One thing worth noting: an OPGSP was never directly authorised by the RBI. It was, rather, operated under an Authorised Dealer Category-I (AD-I) bank which assumed the regulatory compliance and settlement obligations. Common examples of platforms that operated as OPGSPs include PayPal, Stripe, Payoneer etc.

The OPGSP model ran on three parties working together: the exporter, the OPGSP itself, and an AD Category-I bank, all coordinating to move international payments from point A to point B.

Here's roughly how a payment moved under the OPGSP export collection framework:

The exporter raised an invoice for a buyer overseas. The buyer then paid that invoice through the OPGSP. From there, the OPGSP collected the funds in its overseas collection account. Then the AD-I bank took over, checked the RBI compliance, and converted the foreign currency to INR. Finally, the payment was credited to the Indian bank account of the exporter.

This made life much easier for freelancers, consultants, software exporters, agencies and MSMEs, who no longer had to deal with foreign banking relations or figure out SWIFT transfers on their own.

That said, exporters still carried some compliance responsibilities on their end. They had to register their AD Code and make sure the payment was reported correctly against their authorised dealer.

Say a freelancer in Pune sends an invoice to a US client for USD 3,000.

Under the OPGSP model, the client pays through the payment platform. The funds get collected overseas first, then move to the AD-I bank for compliance checks, get converted into Indian Rupees, and finally land in the freelancer's bank account.

At no point does the freelancer deal with foreign banking systems directly.

Today, under an RBI-authorised PA-CB provider like Skydo, the payment flow looks similar, except that the payment platform itself is now directly regulated by RBI, and it throws in automatic FIRA documentation along with faster digital settlements.

The OPGSP guidelines RBI put in place did make international collections a lot more accessible, but the framework wasn't without its problems:

Transaction limits were low. Use cases were limited. RBI supervision was indirect, filtered through the banks rather than applied straight to the platforms. And the customer experience varied a fair bit depending on which provider you went with.

These gaps are basically what pushed RBI towards introducing PA-CB.

What Were the OPGSP Transaction Limits Under RBI Guidelines?

Under OPGSP RBI guidelines, exporters could receive up to USD 10,000 per export transaction, while import payments topped out at USD 2,000 per transaction.

These caps were set up specifically to support low-value cross-border trade, which is precisely why the framework worked so well for freelancers, consultants, software companies, and smaller exporters.

Take this example: a freelancer billing USD 8,000 could easily receive that payment through the OPGSP route. But an invoice for USD 15,000? That blew past the OPGSP limit, meaning the exporter had to find another RBI-approved channel instead.

Even for transactions that stayed within the limit, exporters still had paperwork to deal with, things like getting the purpose codes right, keeping export documentation in order, reporting to the AD bank, and staying on top of FEMA compliance.

The export limit worked fine for smaller operations, but it started feeling restrictive once exporters began landing bigger international contracts. And the import limit of USD 2,000 was even tighter, which really cut down how useful the framework was for anyone handling imports.

Why Did RBI Replace OPGSP With PA-CB in 2024?

RBI swapped OPGSP out for the Payment Aggregator - Cross Border (PA-CB) framework mainly to bring cross-border payment providers under direct regulation, tighten up compliance, and open the door to higher-value international transactions.

Under the old OPGSP setup, payment platforms operated through AD-I banks, and it was really the banks carrying most of the regulatory weight, not the platforms themselves.But as international digital payments picked up pace, the RBI wanted the payment platforms to be directly accountable too, not just the banks backing them.

Hence, the RBI released the PA-CB framework through a circular dated 31 October 2023, providing a deadline of 30 April 2024 for eligible payment providers to get their authorisation from the RBI.

This new framework brought several changes worth knowing about.

Unlike the OPGSP setup, PA-CB providers now need to get RBI approval directly, rather than relying solely on their partner banks to handle that side of things.

PA-CB now allows transactions of up to ₹25 lakh per unit of goods or services, which makes it a much better fit for larger exporters.

PA-CB splits things into three licence categories: Export Only (PA-CB-E), Import Only (PA-CB-I), and Export &amp; Import (PA-CB-E&amp;I). This keeps providers operating strictly within whatever scope they're authorised for.

The framework also enhanced the minimum net worth requirements, KYC procedures, due diligence for transactions above Rs 2.5 lakh, and direct reporting to the RBI.

The upshot for exporters is stronger regulatory oversight, without losing the convenience of a digital payment experience.

The key differences are in regulatory framework, transaction limits, compliance requirements, and the degree of RBI oversight. OPGSP ran through an Authorised Dealer (AD-I) bank, while PA-CB providers answered directly to the RBI.&nbsp;

This shift from OPGSP to PA-CB isn't just a regulatory formality. This shifts the responsibility from the partner bank to the payment platform, thus ensuring more transparency and better protection for exporters.

What Does the OPGSP-to-PA-CB Shift Mean for Indian Freelancers and Exporters?

In practical terms, the shift from OPGSP to PA-CB means Indian exporters and freelancers now need to work with an RBI-authorised PA-CB provider to collect international payments, since OPGSP simply isn't an option anymore.

For exporters, the day-to-day payment experience hasn't really changed much, but what's happening behind the scenes has.

How Does Skydo Help You Collect Cross-Border Payments?

Skydo helps Indian exporters and freelancers collect international payments through an RBI-authorised PA-CB platform, with pricing that's actually transparent, faster settlements, and compliance documentation handled automatically.

If you were previously using an OPGSP platform, Skydo gives you that same convenience, just backed by the newer RBI framework.

For freelancers, service exporters, manufacturers of goods, or those selling on Amazon, Skydo makes international collections easy and hassle-free and as per RBI expectations.

large_Intermediary Banks 

medium_Intermediary Banks 

small_Intermediary Banks 

thumbnail_Intermediary Banks 

Intermediary Banks 

Form 67 is an electronic statement that Indian residents must submit to the Income Tax Department to claim a Foreign Tax Credit (FTC).

When you receive ‌foreign income from an export, your client already deducts an amount as withholding tax. Using ‌Form 67, you can offset that withholding tax against your Indian tax liability, so you don’t have to pay ‌double tax on the same income. If you don’t file Form 67, you cannot get this relief even if you have valid proof of foreign tax payment.

Sections 90, 90A, and 91 of the Income Tax Act read with Rule 128, governs the Foreign Tax Credit (FTC) in India.

Is Foreign Tax Credit Form 67 being replaced by Form 44?

Foreign Tax Credit (FTC) Form 67 was replaced by Form 44 from April 1, 2026. It is part of the new Income Tax Rules, 2026, to increase the transparency and accuracy of foreign income reporting. You can still use Form 67 to claim tax relief on any foreign income earned till and including FY 2025-26.

The new Form 44 framework only applies to income earned from April 1, 2026, onward. There are two key changes in ‌Form 44: You must mention your Foreign Tax Identification Number (FTIN) mandatorily, and you must get a CA certification if your FTC exceeds Rs.1 lakh or if you’re a company.

Let's understand these changes and more in the next section.

Under Form 44, there is a higher level of strictness and disclosure compared to the self-declaration system used in Form 67. The Income Tax Department now requires professional verification for larger claims and more granular data for every transaction.

Primary changes focus on these four areas:

Form 67 allowed taxpayers to self-declare their foreign earnings and taxes. Form 44 introduces mandatory Chartered Accountant (CA) certification under Rule 76(16) for these users:

Individuals: A CA must verify Form 44 if your total foreign tax credit claim is ₹1 lakh or more.

Corporates: Every company claiming an FTC must have its Form 44 certified by a CA, regardless of the credit amount.

Handling disputed foreign taxes within Form 67 was unorganized. The new rules separate undisputed and disputed tax amounts.

The Split: Form 44 handles only undisputed tax credits that are final and paid.

Form 45: If your tax liability is frozen because of a legal dispute in a foreign country, you cannot claim it on Form 44.

The Resolution Rule: You must file Form 45 within six months of the claim being settled to take benefit of FTC retroactively.

Form 44 demands specific technical tracking that was not required in Form 67

Mandatory FTIN: You must provide a unique Foreign Tax Identification Number (FTIN) or its equivalent issued by the foreign government.

DTAA Specifics: For every individual stream of credit, you must cite the specific Double Taxation Avoidance Agreement (DTAA)article under which you qualify for relief.

Cross-Calendar Apportionment: You get binding formulas to split and match your FTC when a foreign country follows a different tax year, such as the January-to-December cycle in the US.

The filing window follows rigid guidelines depending on how you submit your standard returns.

Standard Return: You must submit Form 44 electronically before you file your main Income Tax Return (ITR). You must furnish Form 44 within 12 months from the end of the relevant tax year.

Updated Returns: If you are filing an updated ITR, submit Form 44 on or before the exact date you upload that updated return.

<a></a>How do DTAA and Form 67 work together?

DTAA and Form 67 work together in two steps. First by reducing the withholding tax, and second, by helping you claim the Foreign Tax Credit (FTC).

Reducing withholding tax: Imagine your US-based client paid you $10,000 for delivering a 6-month website revamp project. India has a DTAA with the US, which reduces the withholding tax to 15% from the default 30%. You fill out the <a href="https://www.skydo.com/blog/filing-w-8ben-and-w-8ben-e-a-guide-for-indian-freelancers-and-businesses">W-8BEN form</a> to take advantage of this agreement.

Obtain proof of tax paid: Ask your client to share the tax proof, like IRS Form 1042- S. Use this to prove that you have already paid taxes on the foreign income.

Fill out Form 67: When you file Form 67 on the income tax portal, upload the tax receipt as proof. The tax department will compare the amount of taxes already paid with your tax liability in India. If your foreign tax amount is more than what is due in India, you will get an FTC for the lower amount and do not have to pay more taxes. If your Indian tax liability is higher, you will get an FTC for the withholding tax amount and must pay the difference to the tax authorities.

Who Is Eligible to File Form 67 and Claim Foreign Tax Credit?

Only resident taxpayers are eligible to file Form 67 or Form 44 to claim foreign tax credit. Non Resident Indians (NRIs) cannot claim FTC in India because they’re only taxed for the income received or accrued within Indian borders. Rule 128 of the Income Tax Rules governs the eligibility to file Form 67 and claim FTC.

You must fulfill the following conditions to claim the credit:

How Is Foreign Tax Credit Calculated Under Form 67?

The foreign tax credit is calculated based on the actual foreign tax paid (converted to INR) and the Indian tax payable on that same foreign income. The lower of the two decides the maximum credit you can get.

You must calculate the tax separately for every country and every head of income. You cannot pool credits across different countries or different types of income, such as combining service fees from the US with rental income from the UK.

While converting into INR, you must use the <a href="https://www.skydo.com/blog/telegraphic-transfer-buying-rate">Telegraphic Transfer Buying Rate (TTBR)</a> from the last day of the month immediately preceding the month in which the tax was paid or deducted.

Let’s wrap up foreign tax credit calculation with the help of the following example:

A Bangalore-based freelancer earned software consultancy fees from her US-based client. Here are the assumptions to make the calculation easier:

Withholding tax: $1500 (30%) deducted by her client

Indian tax slab: 20% after standard deductions

Exchange rate: We assume the telegraphic transfer buying rate was ₹94 per USD

Here’s how we determine the final tax liability on her foreign income:

If you are a corporate taxpayer subject to Minimum Alternate Tax (MAT) under Section 115JB, you are still eligible to apply this credit using the same calculation.

What Documents Do You Need to File Form 67?

You need those documents that prove the nature of the income and the tax payment to file Form 67. You must have a certificate or statement from the foreign tax authority specifying the amount of tax deducted or paid. If your client deducted the amount directly at source, such as a US client withholding tax, a certificate from that client is sufficient.

Besides, you must gather the following proofs:

How to File Form 67 on the Income Tax Portal: Step-by-Step

You must follow the following steps to file Form 67 on the Income Tax Portal. Before you start, make sure you have all digital copies of your tax certificates ready for upload.

Screenshot 2026-08-31 at 7.23.06 PM.png

Screenshot 2026-08-31 at 7.23.43 PM.png

Screenshot 2026-08-31 at 7.24.17 PM.png

Screenshot 2026-08-31 at 7.25.31 PM.png

After filing Form 67, you must also fill Schedule FSI (Foreign Source Income) in your ITR. This schedule requires the country code, TIN, and the specific relief amount, which must match the figures in Form 67 exactly. Ensure you include correct exchange rates, uploading correct documentation, and verify the FTC figures in both the forms.

The due date for filing Form 67 is on or before the deadline of the relevant assessment year. For the Assessment Year (AY) 2025-26, the deadline will be March 31, 2026.

Under the original Rule 128, Form 67 had to be submitted on or before filing the ITR. But after the amendment, Rule 128(9) effective from April 1, 2022, you can file Form 67 anytime up to the end of the assessment year.

The amendment was made after the landmark judgments by the Supreme Court (G.M.Knitting Industries) and the Madras High Court (Duraiswamy Kumaraswamy). The judgments established that one cannot be denied from foreign tax credit if Form 67 is submitted before their taxes are assessed.

What Happens If You Miss Filing Foreign Tax Credit Form 67?

Missing the deadline for Form 67 means complete loss of the Foreign Tax Credit (FTC) for that assessment year. There is no late filing window or grace period for this form. The consequence is double taxation on your overseas income; you pay the full tax amount in the foreign country and the full tax amount in India with no offset.

How Does Skydo Help Receive International Payments compliantly?

Skydo simplifies international payments for Indian exporters and freelancers, allowing them to receive global income without the banking hassles. You cannot send money via Skydo; it is specially designed for managing inward remittances. It takes care of both: payments and compliance.

Skydo provides free virtual accounts in USD, EUR, GBP, SGD, AUD, and CAD. Your foreign client pays into a local account in their currency, and Skydo settles the amount in INR within one working day. It takes less than 5 minutes to set up your Skydo account and there are no monthly fees.

The pricing is flat and predictable so you always know how much you will receive in hand:

Every transaction on Skydo comes with a free FIRC automatically generated. This is the exact document needed to support your Form 67 filing as proof of foreign remittance. By using Skydo, your filing paperwork is already organized by the time the ITR season arrives.

large_SWIFT payments alternative

medium_SWIFT payments alternative

small_SWIFT payments alternative

thumbnail_SWIFT payments alternative

SWIFT payments alternative

What Is the MSME Interest Subvention Scheme 2026?

The Micro, Small and Medium Enterprises (MSME) Interest Subvention Scheme is a government-backed export credit support scheme that provides cover for 2.75% of the annual interest costs on eligible MSME export loans, so the exporter only pays the bank the balance interest cost from day one. The benefit is built into the loan from the start, with the government paying part of the interest cost up front, rather than exporters paying full market interest rates and waiting for a policy rebate down the track.

The scheme was introduced under the <a href="https://www.dgft.gov.in/CP/?opt=export-promotion-mission">Export Promotion Mission</a> (Niryat Prothsahan) through the Directorate General of Foreign Trade (DGFT) <a href="https://worldtradescanner.com/20-Trade%20Notice-Interest%20Subvention-signed.pdf">Trade Notice No. 20/2025-26 dated 2 January 2026</a>. It replaced the earlier Interest Equalisation Scheme, which ended in 2024.

It is accompanied by a second, related intervention, collateral support for export credit, launched at the same time to address a different pain point (lack of collateral) faced by small exporters. Both interventions are part of a much bigger effort: the Union Cabinet on November 12, 2025, approved the <a href="https://www.skydo.com/blog/export-promotion-schemes">Export Promotion</a> Mission itself, which has a total outlay of ₹25,060 crore and runs from FY 2025-26 to FY 2030-31. The mission is jointly implemented by the Department of Commerce, the Ministry of MSME and the Ministry of Finance.

What are the Eligibility Criteria under the MSME Interest Subvention Scheme?

An MSME manufacturer or merchant exporter with a valid active IEC and Udyam registration, exporting a product on the scheme's positive list of tariff lines, is eligible. The conditions are specific, so review them carefully:

Both IEC and Udyam conditions must be met at the same time. Many banks also require a signed affidavit stating you satisfy these conditions and haven't claimed the benefit from multiple lenders, so keep it ready with your certificates.

What Are the Key Benefits of MSME Interest Subvention Scheme?

Key benefits are lower borrowing costs from day one, better liquidity during the export cycle, more competitive access to finance, and a WTO-consistent design with no performance conditions attached. For a small exporter with stretched working capital, the attraction of this scheme is more than just the headline interest rate cut.

How Does the Interest Subvention Scheme Work?

The scheme works as a four-party process: the bank offers a discounted rate upfront and later claims the interest it waived from the RBI. The four parties involved are the MSME borrower, the lending bank, DGFT (which manages eligibility and issues the UIN), and the RBI (which reimburses the bank) as per the applicable interest subvention scheme RBI circular.

Step 1: MSME applies for export credit. You approach your commercial bank for pre-shipment or post-shipment rupee export credit. The bank first quotes its normal market rate, say 10% per annum.

Step 2: Register the loan on the DGFT portal. Once the loan is disbursed, you log in to the DGFT portal and file an intent to avail the subvention. A Unique Identification Number (UIN) is generated from the DGFT portal, and the bank uses this UIN to certify your eligibility.

Timing note: DGFT says the subvention will be applicable only if the UIN is generated within 15 days of the loan disbursal (from FY 2026-27). DGFT made this easier specifically for FY 2025-26 (the transition year for the scheme) through a clarification in May 2026, under which UINs created up to 31 May 2026 can still be counted from the original disbursal date, in view of delays in banks' onboarding. The rule going forward, though, is the 15-day clock, so don't sit on this step.

Step 3: The bank applies the discount rate in advance. Once the UIN is validated by your bank, you get an instant reduction of 2.75% from your effective interest rate. So if your normal rate is 10%, your effective rate becomes 7.25%. You then pay EMIs or interest at this lower rate thereafter, not the original one.

Step 4: The bank claims reimbursement from the RBI. Your bank isn't going to add that 2.75% on top of its own margin; it aggregates all the subvention accounts and submits one claim to the RBI, which certifies and repays the bank from government funds as per the prevailing interest subvention scheme RBI circular for the relevant financial year.

How To Apply for the MSME Interest Subvention Scheme 2026?

The process involves checking eligibility, taking export credit at a bank as usual, and then registering the loan on the DGFT portal to generate a UIN and sharing it with the bank. The entire process is digital and runs parallel to the normal loan application; there is no separate subsidy paperwork to chase at a government office.

Screenshot 2026-08-31 at 7.18.43 PM.png

MSME Interest Subvention Scheme vs Interest Equalisation Scheme: Key Differences

The MSME Interest Subvention Scheme is not a rebrand but a structurally different scheme. Both schemes share the broad purpose of lowering the cost of export credit, but this scheme differs in rate structure, caps, product coverage and policy integration from the old Interest Equalisation Scheme (IES), the scheme many exporters still know from the interest subvention scheme for exporters 2020-21 period.

Practical implication: If you were eligible under the older interest subvention scheme for MSME 2020-21 framework, this is not an automatic carryover. You will have to re-register under the new scheme on the DGFT portal and separately confirm that your product is covered by the current positive list of tariff lines.

How Does Skydo Help Indian Exporters Receive International Payments?

<a href="https://www.skydo.com/">Skydo</a> helps Indian MSME exporters receive international payments at flat and transparent fees and provides FIRA and eBRC support required for DGFT compliance. Capping interest costs with the subvention scheme is only half the battle for protecting export margins; the other half is ensuring the foreign buyer's payment reaches the exporter's account without silent deductions eating up the money just saved on financing.

Forex markups and correspondent bank charges on traditional banking channels and platforms like PayPal can consume as much as 8% of the value of a payment, easily wiping out the benefit of a 2.75% interest subsidy on a modest loan.

Skydo is built for Indian MSME exporters getting paid by international clients. It provides:

large_Paypal business account

medium_Paypal business account

small_Paypal business account

thumbnail_Paypal business account

Paypal business account

Form 15CA is a self-declaration that any individual or entity must file with the Income Tax Department ‌in India before they remit money to a non-resident or a foreign company. Form 15A is an official notice by the remitter that they are aware of the tax obligations for the transaction. Rule 37BB of the Income Tax Rules governs Form 15CA, and it is filed through the Income Tax e-filing portal.

The purpose of Form 15CA is to track foreign outflows and verify that the remitter has deducted the correct amount of tax. If you are an Indian exporter or freelancer receiving money, your foreign client is the one filing an equivalent form in their country. However, your client may ask you for documents like your PAN or a tax residency certificate to complete their filing.

Download Form 15CA&nbsp;<a href="https://www.incometaxindia.gov.in/documents/d/guest/103120000000007842-pdf-5">here</a>

Form 15CB is a certificate issued by a practicing Chartered Accountant (CA) who confirms that the foreign remittance has been taxed appropriately. The CA examines the nature of the payment and the provisions of any <a href="https://www.skydo.com/blog/dtaa-guide-india">Double Taxation Avoidance Agreement (DTAA)</a> to determine the correct TDS rate. This certificate is like an independent audit of the transaction and is prepared before the funds are sent abroad.

Form 15CB is mandatory when the remittance is taxable in India and the total value exceeds ₹5 lakh in a financial year. If the payment is below this threshold or is not taxable, Form 15CB is not needed. The CA must file Form 15CB on the tax portal before the remitter uploads Part C of ‌Form 15CA.

Growing Global

Staying Compliant blogs